Question: You are the auditor of Fine Timber Limited (Fine Timber) a major furniture manufacturer in Malaysia. Fine Timber intends to upgrade its manufacturing processes and plans to finance the upgrade from the sale proceeds of a property which is superfluous to its needs. The property was subdivided, made ready for sale and placed on the market in May 20Y6. On 17 July 20Y6 the state government approved plans for the construction of a major sporting complex. Construction of the sporting facility will result in the appropriation of a portion of the property that Fine Timber intended to sell. It is envisioned that the construction of the sporting complex will start in the middle of 20Y4 and no estimate of the compensation payable to Fine Timber and others affected will be available until early 2017.
a. Describe the additional audit procedures you would perform prior to issuing your audit report.
b. Describe the audit opinion you intend to issue of the above entities for the year ended 30 June 2016.